08 Feb 2005 08:54
08.02.2005 08:35:31 TOCOM gold rallies modestly on softer yen
TOKYO, Feb 8 (Reuters) - Tokyo gold futures staged a modest bounce on Tuesday due to buybacks induced by a softer yen, but few players bought aggressively given the precious metal's decline to a near four-month low in New York.
The benchmark December gold contract on the Tokyo Commodity Exchange finished up 7 yen at a session high of 1,400 yen per gram, after hitting a low of 1,395 yen.
Other months rose by 4 to 8 yen.
"Players were buying but they were cautious as the mood of the New York market's pretty weak," a Tokyo-based analyst said.
He noted that the bullion market had eased in Asia and was approaching a four-month low.
Most dealers expect support at around $410 an ounce to hold.
"It's still possible that spot gold will breach $410, and that makes you hesitate about buying gold actively," he said.
Spot gold was fetching $412.5/3.25 an ounce at TOCOM's closing bell, compared with $413.80/4.60 last quoted in New York.
The metal fell to $412 in Asia, its lowest since mid-October.
U.S. gold futures closed at a near four-month low on Monday, depressed by a weaker euro and uncertainty about what the International Monetary Fund may do regarding possible sales or a revaluation of its gold holdings.
April-delivery gold fell 50 cents to $415.40 an ounce.
It dipped to touch $414.00, the lowest since Oct. 13.
The IMF will review and report back in April on proposals to revalue or sell its gold reserves to help finance debt relief for poor countries.
Analysts said outright sales by the world's third-biggest holder of gold bullion were unlikely due to expected opposition from the United States.
However, the psychological impact of the issue was bearish for the price of gold.
Total gold turnover on TOCOM was estimated at a light 36,997 lots, less than half of Monday's 79,122 lots.
In the currency market, the dollar strengthened to hit a two-month high against the yen.
At 0700 GMT the dollar fetched 105.30 yen , a level not seen since Dec. 15, and compared with 104.84 in late U.S. trade.
Optimistic comments from the Federal Reserve chief on the huge U.S. deficits also provided support.
The benchmark December platinum futures contract closed down 24 yen at 2,837 yen, after moving in a range of 2,821 to 2,865 yen.
Spot platinum was at $858/863, down from New York levels of $866.50/871.50 an ounce.
Below are closing prices for TOCOM's most active precious metals contracts, with the day's turnover for each metal.
Closing prices are in yen per gram except for silver, which is in yen per 10 grams: For open interest details please click
Closing price Turnover (lots)
GOLD 1,400 (up 7) 36,997
SILVER 220.1 (down 1.6) 2,955
PLATINUM 2,837 (down 24) 40,445
PALLADIUM 612 (up 3) 747